YH — Investor Presentation 2017

Nov 23, 2017

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YIEH HSING ENTERPRISE CO., LTD. Investor Conference

Stock Code:2007

November 23, 2017

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Disclaimer

This presentation is based on the information obtained from various sources which the Company believes to be reliable. But at some point in the future, there are a variety of factors which could cause actual results to differ materially from those statements. Therefore, please refer to the information on MOPS website as the main basis if any adjustment has been made. (http://mops.twse.com.tw/mops/web/index)

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Table of Contents

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• Company Overview

• Operating Performance

• Development Strategies

• Main Investment & Unrealized Gain

• Future Outlook

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COMPANY OVERVIEW

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INTRODUCTION

Time Establishment July 1978 Capital Investment 5.3 billion Chairman LIN-MAW WU President Robert Sen-Long Chen Number of Employee 436 (Oct., 2017) Stock Time to Market October 4, 1988

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COMPANY OVERVIEW

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LOCATION

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COMPANY OVERVIEW

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LOCATION

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COMPANY OVERVIEW

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PRODUCTS

• Stainless Steel Wire Rods

 Stainless Bars

200 series 400 series  304 series 310S 、 YH440M 303 series 307/308 welding series 305 series 309 welding series 316 series 316 welding series

 Deformed bars

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• Non-Stainless Steel Wire Rods

Carbon Steel series Alloy Steel series Free-Cutting series

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COMPANY OVERVIEW

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WIRE ROD MANUFACTURING PROCESS

Reheating furnace Products As rolled wire rod(HR) Billet Inspection Rolling carbon/stainless/alloy steel solution annealing As rolled annealed stainless steel wire rod (HRA) pickling As rolled pickled stainless steel wire rod (HRP) pickling As rolled annealed & pickled stainless steel wire rod solution annealing (HRAP)

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COMPANY OVERVIEW COMPANY VIDEO INTRODUCTION

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COMPANY OVERVIEW

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APPLICATIONS OF WIRE ROD Wire rods are widely used, mainly for downstream customers in processing into a wide range of screws, nuts, thin wire, springs, polished bars, welding wire and other products. They can be made into various industrial products, electronics, aerospace, transport , medical biochemical appliances, hand tools, home hardware appliances ... and other basic parts.

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Stainless Linear
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Stainless Welding Steel
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General Applications (Bolt, Nut)
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Stainless Profiles/Polished Stainless Spring Steel Wire / Rod
Stainless Fine Wire
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OPERATING PERFORMANCE

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CONSOLIDATED INCOME STATEMENT

	2017 Jan~Sep 2016 Jan~Sep 2016 2015 (amount) (amount) (amount) (amount) 6,065,039 5,428,866 7,272,512 7,504,158 175,962 151,248 198,235 (44,425) (9,970) (17,183) (37,278) (269,953) (158,434) (179,604) (256,695) (496,929) (158,039) (179,412) (256,004) (496,920) (0.30) (0.34) (0.41) (0.79) Amount Unit : NT$ kilo dollars	2017 Jan~Sep 2016 Jan~Sep 2016 2015 (amount) (amount) (amount) (amount) 6,065,039 5,428,866 7,272,512 7,504,158 175,962 151,248 198,235 (44,425) (9,970) (17,183) (37,278) (269,953) (158,434) (179,604) (256,695) (496,929) (158,039) (179,412) (256,004) (496,920) (0.30) (0.34) (0.41) (0.79) Amount Unit : NT$ kilo dollars	2017 Jan~Sep 2016 Jan~Sep 2016 2015 (amount) (amount) (amount) (amount) 6,065,039 5,428,866 7,272,512 7,504,158 175,962 151,248 198,235 (44,425) (9,970) (17,183) (37,278) (269,953) (158,434) (179,604) (256,695) (496,929) (158,039) (179,412) (256,004) (496,920) (0.30) (0.34) (0.41) (0.79) Amount Unit : NT$ kilo dollars	2017 Jan~Sep 2016 Jan~Sep 2016 2015 (amount) (amount) (amount) (amount) 6,065,039 5,428,866 7,272,512 7,504,158 175,962 151,248 198,235 (44,425) (9,970) (17,183) (37,278) (269,953) (158,434) (179,604) (256,695) (496,929) (158,039) (179,412) (256,004) (496,920) (0.30) (0.34) (0.41) (0.79) Amount Unit : NT$ kilo dollars
Consolidation	2017 Jan~Sep	2016 Jan~Sep	2016	2015
	(amount)	(amount)	(amount)	(amount)
Operating Revenue	6,065,039	5,428,866	7,272,512	7,504,158
Gross Profit	175,962	151,248	198,235	(44,425)
Net Operating Income(loss)	(9,970)	(17,183)	(37,278)	(269,953)
Net Income (loss)	(158,434)	(179,604)	(256,695)	(496,929)
Total comprehensive profit / loss for this period attributable to : Owners of theparent company	(158,039)	(179,412)	(256,004)	(496,920)
Earning per Share(dollars)	(0.30)	(0.34)	(0.41)	(0.79)

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OPERATING PERFORMANCE

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REVENUE AND PRODUCTION CHART OVER THE YEARS

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Revenue Unit: Production Unit:
NT$ 100 million 10,000 tons / year
80 75.04 35
72.32 72.73
31.9 31.3
70
30
28.2
60.37
60
25
50
19.4 20
40
15
30
10
20
5
10
- 0
2013 2014 2015 2016 102 年 103 年 104 年 105 年
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OPERATING PERFORMANCE PROPORTION OF REVENUE 2017 JAN.~SEP.

Other Income 6.3% NonStainless Wire Rod 21.4%

Stainless Steel Wire Rod 72.3%

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OPERATING PERFORMANCE

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STAINLESS STEEL MARKET SALES AREA DISTRIBUTION

2017 JAN.~SEP.

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EUROPE
2.3%
USA
ASIA TAIWAN
9.1%
34.6% 54.0%
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OPERATING PERFORMANCE

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NON-STAINLESS STEEL MARKET SALES AREA DISTRIBUTION

2017 JAN.~SEP.

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USA
ASIA TAIWAN
7.3%
0.7% 92.0%
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DEVELOPMENT STRATEGIES

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Yieh Hsing is knows as famous service both with quality, price and delivery. To achieve these multiple goals, we start simultaneously in raw materials, production management, research and development.

Raw Materials

Production Management

R&D

1. In addition to maintaining good relationships with upstream suppliers, we also actively seek opportunities for cooperation with new suppliers.

2. To ensure the quality of raw materials, price, volume and delivery can achieve the optimal configuration.

3. The implementation of Lean Management (TPM) to improve production process and reduce production costs. 2. According to customer requirements to adjust production scheduling, and guided by sales and market requirements as thedirection of production and quality improvement and strive to the best.

4. Continue to develop highperformance stainless steel new grades to expand the market, cut off the threat of low-cost competition. 2. Combined with the upstream melting shops, we strive to melt customized products for our customers.

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MAIN INVESTMENT & UNREALIZED GAIN INVESTMENT PROJECT : E-SKY LAND(HALL A) LOCATION

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Dashun 1st Rd.
Hall A
Longde Rd.
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MAIN INVESTMENT & UNREALIZED GAIN E-SKY LAND ALL SHOPPING CENTER AND (H A)-BOUTIQUE INTERNATIONAL TOURIST HOTEL

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Yieh Hsing Company Operation Item Share Cooperator Remarks Holding% Boutique The investment Great Emperor Shopping 100% site on the 31st Hotel Co., Ltd. Center floor, 6 layers of Kingsgarden the ground, an area 本開發案預計2019年上半年試營運。 International Marriot International Co., 100% of about 254,545 Tourist Hotel Group Ltd. M[2 ]

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The development project is expected to trial operation in the first half of 2019.

◎U nrealized Gain from Disposal of Land Yieh Hsing sold in 2012 in Long-Don section of Kaohsiung City Land to these two subsidiaries, and generate unrealized gain of NT $ 4.96 billion.

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FUTURE OUTLOOK

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• The implementation of the supply-side reform and the vigorous implementation of the environmental protection policy in the Mainland will all present a positive development trend for market competition and price impact.

• Our products have been marketed for many years, and its quality and service have been approved by customers. Also with the introduction of TPM resulting in a substantial increase in production performance and further enhancement of market competitiveness.

 We will continue to actively explore sources of domestic and overseas raw materials in order to provide customized products and services, expand the operation of different customer bases and seek the best combination of cost and operating performance.

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~ Thank You ~

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